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U.S. chip funding could result in seven to 10 new factories -officials

Berita 24 English -  The proposed $52 billion increase in government funding for semiconductor production and research could result in the d...

Berita 24 English - 
The proposed $52 billion increase in government funding for semiconductor production and research could result in the development of seven to 10 new U.S. factories.

"The government funding should generate around $150 billion in investment, including contributions from state and federal governments, as well as the private sector," Raimondo stated at an event outside a Micron Technology Inc chip factory.

Raimondo said, "We just need the federal funding ... to unlock private capital. That could take place over the course of seven, eight, or nine more factories that will be built in the United States."

She predicted that states would compete for federal grant money for chip production facilities, and she suggested that the Commerce Department award grants transparently.

A global shortage of semiconductor chips has affected automakers and other industries because of factors, including a rise in demand for electronic devices during the pandemic. Many auto manufacturers, including General Motors, Ford, and Toyota, have reduced their output because of the shortage.

At a Monday event announcing the Recovery Act funding, U.S. Senator Mark Warner, a Democrat, said he thought the funds could result in "seven to 10" new fabrication plants. Warner concluded, "This will not solve this problem overnight." "The Commerce Department will have to go years before this work is completed."

Schumer announced new bipartisan legislation on Tuesday to allocate $52 billion over five years for U.S. semiconductor chip production and research.

Many people support government funding of research and development (R&D) because, in 1990, the United States had a 37% share of semiconductor and microelectronics manufacturing. In 2017, the United States produced only 12% of semiconductors.

An additional $39 billion for manufacturing and R&D investment incentives is also included in the bill, alongside $10.5 billion to help fund many other R&D initiatives, including the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program and others.

To garner support from Republicans, Senator John Cornyn, a Republican from Texas, has proposed a bill amendment that would remove prevailing wage provisions.

Cornyn made clear that he does not expect the wage issue to hinder our success, as he stated to Reuters. Passing the Chips for America Act is important, but I believe the act must be passed.

He said that the United States had no choice but to make these investments due to China's absence. This is a security concern we must take care of.

Ford warned that the shortage of chips in the second quarter might reduce production by half, resulting in $2.5 billion in lost production and about 1.1 million fewer vehicles by 2021.

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